HomeFinancial MarketsRussian Central Bank Cuts FX Restrictions for Banks

Russian Central Bank Cuts FX Restrictions for Banks

The Russian central bank announced on Saturday its decision to ease foreign currency restrictions on the country’s banks in an effort to ease the concerns of Russian households regarding the supply of foreign currencies. This move is also aimed at easing pressure on the downward pressure on the Russian rouble.

Prior to the announcement, banks were only permitted to sell foreign currency cash that had been bought by individuals before April 9. With the new policy in place, banks are permitted to sell any foreign currency that has been obtained from other sources regardless of date of purchase.

“This is an additional tweak to the measures already in place, which allow for the increased supply of cash dollars and euros on the Russian market,” the Bank of Russia stated on Saturday as the new policy came into effect. While Russian banks have been permitted to sell any foreign currency apart from Dollars and Euros since May, this restriction has also been lifted.

Curbs on foreign currency exchange restrictions by the Bank of Russia are expected to remain in effect until March 9, 2023.

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